The price elasticity of demand generally tends to be:
Smaller in the long tun than in the shot run
Smaller in the short run than in the long run
Un related to the length of time
Larger in the short run than in the long run.
If change in the demand of the commodity is proportionate to change in price, the demand of the commodity will be
Unit elasticity
Less than unit elasticity
Perfectly elastic
Perfectly inelastic
Change in the demand of a commodity due to change in the price of the substitute is an example of
Cross elasticity
Price elasticity
Income elasticity
Inelastic
In figure, a unit elastic demand curve is shown by
a
b
c
d
Under which one of the following circumstances will the firm have to absorb all the increase in indirect tax itself, being unable to pass on any of it to the consumer?
Perfectly inelastic demand
Perfectly elastic demand
Unit elastic demand
Relatively elastic demand
The demand will be _____ if there is no change in the demand of the commodity inspite of the change in the price of the commodity.
Elastic
For which product is the income elasticity of demand most likely to be negative?
Computer software
Used clothing
Basket balls
Bread
If a good is a luxury, its income elasticity of demand is.
Positive and less than 1
Negative but greater than 1
Positive and greater than 1
Zero
If demand is price elastic, then:
A rise in price will raise total revenue
A fall in price will raise total revenue
A fall in price will lower the quantity demanded.
A rise in price won't have any effect on total revenues.
In case of demand, a slight change in the price will make greater changes in demand
